I have been mostly investing in mutual funds via SIP.
After investing since last 3+ years now, I never experienced the terrible market fluctations since years.
Last 3 months, in few days, the market was climbing and dwindling down by 800 points in a day!!
Market is driven by sentiments, but this is way beyond what i evenr expected. I still remember watching many talk shows and many so called "experts" telling very confidantly that the SENSEX will reach 27000-28000 this year end. I cant say that this will happen or not, but still wonder whether it will reach 21,000 mark again this year. No doubt, staying for longer time, blah blah..etc works, but then, you might need a relatively stable investment option. Apart from Debt fund, I came to know about Arbitrage - funds just a few days back. I still believe in saving 70,000 annually in PPF as it is a best option, till the government backs it and gives 8% tax free.
Just wanted to share the "Arbitrage" stuff here, for those who are looking for a relatively stable returns with a relatively less risk. If anyone knows more about it, please add here.
<<Ref:ediff.com http://www.rediff.com/money/2006/sep/12mf.htm>>
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Arbitrage is a strategy, which involves simultaneous purchase and sale of identical or equivalent instruments in two or more markets in order to benefit from a discrepancy in pricing. This strategy normally acts as a shield against market volatility as the buying and selling transactions offset each other.
After investing since last 3+ years now, I never experienced the terrible market fluctations since years.
Last 3 months, in few days, the market was climbing and dwindling down by 800 points in a day!!
Market is driven by sentiments, but this is way beyond what i evenr expected. I still remember watching many talk shows and many so called "experts" telling very confidantly that the SENSEX will reach 27000-28000 this year end. I cant say that this will happen or not, but still wonder whether it will reach 21,000 mark again this year. No doubt, staying for longer time, blah blah..etc works, but then, you might need a relatively stable investment option. Apart from Debt fund, I came to know about Arbitrage - funds just a few days back. I still believe in saving 70,000 annually in PPF as it is a best option, till the government backs it and gives 8% tax free.
Just wanted to share the "Arbitrage" stuff here, for those who are looking for a relatively stable returns with a relatively less risk. If anyone knows more about it, please add here.
<<Ref:ediff.com http://www.rediff.com/money/2006/sep/12mf.htm>>
-----------------------------------
Arbitrage is a strategy, which involves simultaneous purchase and sale of identical or equivalent instruments in two or more markets in order to benefit from a discrepancy in pricing. This strategy normally acts as a shield against market volatility as the buying and selling transactions offset each other.
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